Madison county was formed while the area was still part of Virginia and
probably named for
James Madison,
who was then in the Virginia legislature. The original county seat was
Milford,
but it was moved to
Richmond
in 1798.

Many early settlers passed through Madison county.
Fort Boonesborough
was established near the Kentucky River in 1775. Several ferries across the
Kentucky once operated in the county, beginning with one at Boonesborough
in 1779. A ferry still operates at
Valley View,
where Tates Creek enters the Kentucky River.